What happens to customer vehicles in the shop when a garage is sold?
Customers’ vehicles stay their property, and the buyer usually takes over the open jobs, so the sale needs a list of every vehicle in the shop with its work status, authorizations and charges. Agree who completes, bills and answers for each job, and tell customers about the change.
On the day before closing, walk through the shop with the seller and list every vehicle: owner, work authorized, parts ordered, work done, amount billed and amount unpaid. Photograph each one and note its condition. This record protects both sides if a dispute comes up later.
Then decide how each job is handled. Work finished before closing is usually the seller’s to bill, while work started and not completed needs a clear split of cost and responsibility. Your lawyer can write that into the agreement, and your accountant can adjust the closing figures.
Confirm the insurance. Ask whether the garage coverage for customer vehicles continues without a gap and who is covered for damage that happened before or after closing. A gap here can be expensive. Tell customers. Anyone with a car in the shop should hear from the seller or you, in plain words, who is finishing their job, whether the quote still stands and who to call. Check that the paperwork for stored vehicles and unclaimed cars is in order too. Also ask about warranty work on recent repairs. A customer who returns after closing with a problem from the seller’s time will come to you, so agree beforehand who handles it and pays. Clear answers prevent arguments at the counter.
Key takeaways
- Walk the shop together and record every vehicle and job.
- Agree in writing who completes and bills each open job.
- Confirm insurance covers customer vehicles without a gap.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerCan I buy an auto repair shop if I’m not a mechanic?
- GuideBuying a franchised auto repair shop in Canada
- GuideBuying an auto body and collision repair shop in Canada
- GuideBuying an auto glass repair and replacement shop in Canada
- GuideBuying an independent auto repair shop in Canada
- GuideBuying an auto repair business in Canada
Due diligence
Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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